Caesars confirms data breach, while MGM fights to remain open following ransomware attack

Author: Keith Stein | Fact checker: Tommi Valtonen · Updated: · Ad Disclosure
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While MGM Resorts International continues to deal with a cybersecurity issue that started on Sunday, Caesars Entertainment confirmed on Thursday they also identified suspicious activity in its information technology network resulting from a “social engineering attack.”

Social engineering attacks use psychological manipulation to trick employees into making security mistakes or giving away sensitive information so hackers can access company computer networks.

In a company 8-K report filed Thursday with the Security and Exchange Commission (SEC), Caesars said an unauthorized actor acquired a copy of their loyalty program database. The database contains “driver’s license numbers and/or social security numbers for a significant number of members in the database,” Caesars said in the report. The security breach occurred on Sept. 7.

“We are still investigating the extent of any additional personal or otherwise sensitive information contained in the files acquired by the unauthorized actor,” the company said in the Form 8-K report.

Caesars says their physical properties and online and mobile gaming applications, like Caesars sportsbook and casino, have not been impacted by this incident and continue without disruption.

“After detecting the suspicious activity, we quickly activated our incident response protocols and implemented a series of containment and remediation measures to reinforce the security of our information technology network,” Caesars said. “We also launched an investigation, engaged leading cybersecurity firms to assist, and notified law enforcement and state gaming regulators.”

The company said they have no evidence to date that any member passwords/PINs, bank account information, or payment card information were acquired by the unauthorized actor.

“We have taken steps to ensure that the stolen data is deleted by the unauthorized actor, although we cannot guarantee this result,” Caesars said. The company is monitoring the web and has not seen any evidence that the data has been further shared, published, or otherwise misused.

Caesars stated, “No company can ever eliminate the risk of a cyberattack,” but believes they have taken appropriate steps to harden systems to protect against future incidents. “These efforts are ongoing.”

Caesars Entertainment is one of the largest casino developers in the United States. The company said they have incurred, “and may continue to incur,” certain expenses related to the attack.

“The full scope of the costs and related impacts of this incident has not been determined,” Caesars said.

MGM Still Paralyzed

In the meantime, MGM Resorts International is doing everything it can to fight off ransomware placed on its computer network five days ago.

“We continue to work diligently to resolve this issue,” said MGM CEO Bill Hornbuckle in a statement on Thursday.

A cyber-attack over the weekend has almost paralyzed MGM, affecting hotel reservations, players’ reward program, the company’s website, mobile app, room charges and other computer-related services.

MGM locations started postponing kiosk games, and drawings and rescheduled free gift giveaways at casino properties on Thursday.

“Please know we are also experiencing intermittent system issues that may impact our outlets and the ability to redeem your offers and MGM Rewards,” the company said in an email to customers.

After detecting the security issue, MGM management quickly began an investigation with assistance from leading external cybersecurity experts. “We also notified law enforcement and took prompt action to protect our systems and data, including shutting down certain systems.” the company said after identifying the threat.

This is not the first time MGM has dealt with a hacking incident. The company’s BetMGM app reported a security breach in December that involved the names, Social Security numbers and financial information of an unknown number of customers.

The BetMGM online sports betting & casino app and website have remained operational with no issues during this week’s cyber-attack.

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Keith Stein is a freelance journalist based in Virginia. At BonusFinder.com he covers new slots and games releases, manufacturer updates, and iGaming legislation.

Keith has experience in freelance writing, full-time journalism and supporting monthly and weekly news publications. In addition to BonusFinder, he has an impressive resume, working among other things, as a contributing writer with United Press International.